Yahoo Finance What Labour winning the election would mean for workers
The general election on 4th July could mean a raft of changes to workers’ rights and employment law if the Labour party comes to power.
Although the detail of how and when Labour plan to execute the “biggest upgrade to rights at work for a generation” remains to be seen, the party’s manifesto, employment rights green paper and Plan to Make Work Pay give an insight into the key priorities, including more rights from day one of employment.
Kate Palmer, employment services director at Peninsula, the global HR, Health & Safety, and employment law advisory company, explains: “The Labour party manifesto has laid out approximately 60 changes to employment laws that they would look to bring in, should they win the general election. They have also pledged to bring about these changes within 100 days of taking office.
“We don’t know what that would look like in practice, whether consultation periods on draft bills would happen within the 100 days or if they would be looking to push through the end legislation.”
Here are some of the key pledges on work, employment and worker rights.
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Expanded parental leave and sick pay
The party wants to introduce basic rights, such as parental leave and sick pay, from day one of employment. It would make paternity leave – but not paternity pay – available to fathers from their first day in a job, rather than after 26 weeks of continuous employment.
It would expand statutory sick pay to the first three days of illness and to those earning less than £123 per week. Other workplace rights proposed include increased flexitime working opportunities, the ‘right to switch off’ – which would crackdown on requirements to work outside normal working hours – and greater protections for workers from remote surveillance.
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Protection against unfair dismissal
Finally, the party wants to give all workers the right to bring an unfair dismissal claim from day one of employment. Currently only employees have a right to do so, and then only once they have clocked up two continuous years of service.
Labour have said that they will abolish the current categories of employment status, merging employees and workers into one single ‘worker’ status. “Under this plan, all workers would be afforded the same basic rights and protections around sick pay, holiday pay, parental leave, protection against unfair dismissal,” explains Palmer.
Bereavement leave, carers' leave and neurodiversity
It would introduce a right to bereavement leave for all workers and the possibility of paid carers’ leave. Finally, the party has said it will raise awareness of neurodiversity among employers, and review workplace provisions for stress, mental health and long Covid.
Crackdown on zero hour contracts
Labour has said it will end “one sided” flexibility and ensure all jobs provide a baseline level of security and predictability, banning “exploitative” zero hours contracts and ensuring everyone has the right to have a contract that reflects the number of hours they regularly work, based on a 12-week reference period.
Increased minimum wage
The minimum wage would reflect a genuine living wage and all adults would be entitled to the same minimum wage, regardless of their age. To raise pay, the party proposes changing the Low Pay Commission’s remit so that the cost of living will also be a factor, alongside median wages and economic conditions.
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Action to reduce gender pay gap
Labour has committed to strengthening women’s rights to equal pay and taking steps to reduce the gender pay gap, including by introducing mandatory, more in-detail pay gap reports. The publication of ethnicity and disability pay gaps will also be made mandatory for employers with more than 250 staff, to mirror gender pay gap reporting.
The party would also extend the full right to equal pay that now exists for women to black, Asian and minority ethnic (BAME) workers, as well as disabled people. The legal right, which would follow a consultation with business groups and unions, would be gradually introduced to give employers time to adapt to paying all their staff fairly.
The change would mean that equal pay claims on the basis of ethnicity and disability were treated the same as those made by women who currently have stronger legal protections.
Protection against discrimination and harassment
A Labour government would strengthen women’s protections from maternity and menopause discrimination and sexual harassment by imposing a duty on employers to take all reasonable steps to prevent sexual harassment, including by third parties.
It would also make it unlawful to dismiss a pregnant worker for six months after their return to work “except in specific circumstances”.
Fairer tips for hospitality workers
Labour will strengthen the law to ensure workers in pubs, bars, cafes and restaurants receive their tips in full. Additionally, workers will decide how tips are allocated.
Ban on fire and rehire practices
The party wants to end “fire and rehire” practices, where employees are dismissed and then rehired under new, often less favourable, contractual terms. Exceptions will be made if a business has no alternative option and a proper process, involving discussions with workers, must be followed.
Better access to trade unions
Labour has said it will enhance people’s access to trade unions and make it a requirement for employers to inform their staff of their right to join a union.
More support for small businesses
Labour has said it will take action on late payments to ensure small businesses and the self-employed are paid on time, while improving guidance and removing barriers to exporting for small businesses.
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